Category analysis in a market management

ABSTRACT

The present disclosure provides for analyzing expenditures by category. A file including expenditure data relating to spent monies is identified. The expenditure data from the file is extracted. An independent and a dependent variable relating to the expenditure data are determined. The expenditure data is graphed based on the determined variables. Conclusions are displayed based on the expenditure data.

FIELD OF THE INVENTION

The present invention relates to sourcing processes and moreparticularly to Internet based market management.

BACKGROUND OF THE INVENTION

Commercial sites on the Internet (in particular on the World Wide Web)are known. Typically, Web sites where merchandise or services can bepurchased consist of a static description of the goods or services beingoffered, the price at which such goods or services are being offered,and some type of order form for a customer to enter personal and paymentinformation. Similarly, Web sites soliciting merchandise and servicesconsist of a static description of the goods or services sought, theprice at which such goods or services will be purchased at, and sometype of order form for a seller to enter personal information.

Such sites are not well suited for the purchase of goods or servicesthat are negotiable, including unique, surplus, high-volume ordiscontinued items, or negotiable services. The known commercial Websites are interactive only to the extent that a customer is able tochoose a particular item for purchase and to enter payment and shipmentinformation. Such Web sites include so-called “auction” sites such asNetMarket.RTM. (www.netmarket.com), in which users may consecutivelyenter prices they are willing to pay for specific products, until a setdeadline, thus bidding up the price. The product is then sold to thecustomer with the highest bid. Such “auction” Web sites do not allow theuser to negotiate with the vendor, or vice versa. Consequently, there isno manner by which negotiation can take place between the seller and thecustomer.

Thus, there exists a need in the art for a dynamic and interactivecomputer-implemented system which is capable of purchasing, through adistributed network such as the Internet, goods and/or services thathave negotiable prices.

SUMMARY OF THE INVENTION

The present disclosure provides for analyzing expenditures by category.A file including expenditure data relating to spent monies isidentified. The expenditure data from the file is extracted. Anindependent and a dependent variable relating to the expenditure dataare determined. The expenditure data is graphed based on the determinedvariables. Conclusions are displayed based on the expenditure data.

In one embodiment of the present invention, a user may be allowed tocreate the file including expenditure data relating to spent monies. Inanother embodiment, the file may be based on a materials worksheet.Optionally, the file may be based on a services worksheet.

In one aspect of the present invention, the determined variables mayinclude price distribution and total expenditure by suppliers. Inanother aspect, the displayed conclusions may include recommended issuesto consider. Further, a user may be allowed to input conclusions aboutthe graphed expenditure data.

BRIEF DESCRIPTION OF THE DRAWINGS

The invention will be better understood when consideration is given tothe following detailed description thereof. Such description makesreference to the annexed drawings wherein:

FIG. 1 is a schematic diagram of a hardware implementation of oneembodiment of the present invention;

FIG. 2 is a process flow diagram of a procurement process in anelectronic commerce setting in accordance with an embodiment of thepresent invention;

FIG. 3 is a flow chart that illustrates a process for affording a marketmanagement framework in accordance with an embodiment of the presentinvention;

FIG. 4 illustrates a chart of several sourcing strategies;

FIG. 5 depicts a multi-tiered sourcing management process in accordancewith an embodiment of the present invention;

FIG. 6 depicts a sourcing process for multi-tiered market management inaccordance with one embodiment of the present invention;

FIG. 7 shows several components of a total cost analysis for privateoffer and reverse auctions;

FIG. 8 depicts an illustrative embodiment of an SSM;

FIG. 9 depicts elements of a buyer support system that may be utilizedto offer the support services described with reference to FIG. 8;

FIG. 10 illustrates the total cost analysis process in operation with anSSM process with corresponding application modules and performanceservices;

FIG. 11 depicts an architecture of the SSM in accordance with apreferred embodiment;

FIG. 12 depicts an illustrative timeline for implementation of an SSMsystem;

FIG. 13 depicts a process flow of the SSM in accordance with a preferredembodiment of the present invention;

FIG. 14 illustrates several total cost of ownership components, which acompany can manipulate to achieve lower total cost through strategiceSourcing utilizing an SSM system and process;

FIG. 15 depicts a chart showing an illustrative allocation scheme forpurchasing professional time;

FIG. 16 illustrates a progression for building internal eSourcingcapabilities;

FIG. 17 is a depiction of the main elements of a business to businesseCommerce architecture in accordance with one embodiment of the presentinvention;

FIG. 18 illustrates an SSM process in accordance with another embodimentof the present invention;

FIG. 19 illustrates a reverse auctioning system in accordance with anembodiment of the present invention;

FIG. 20 depicts a flowchart of a method for a reverse auction inaccordance with an embodiment of the present invention;

FIG. 21 depicts a process for carrying out the auction of operation 2010of FIG. 20;

FIG. 22 illustrates a front page of a graphical user interface of an SSMsystem in accordance with a preferred embodiment of the presentinvention;

FIG. 23 depicts a screen displayed upon selection of the link to thecommodity analysis application;

FIG. 24 illustrates a second screen displayed upon selection of thelaunch button of the screen shown in FIG. 23;

FIG. 25 depicts graphs created upon selection of the create graphsbutton on the interface of FIG. 24;

FIG. 26 illustrates a screen displaying questions supplied to assist thebuyer in interpreting the data generated by the commodity analysisapplication;

FIG. 27 is a flow diagram of a process for analyzing expenditures bycategory;

FIG. 28 shows a screen displayed upon selection of the link to thesupplier analysis application from the home page;

FIG. 29 illustrates a screen that summarizes supplier responses;

FIG. 30 is a flow diagram of a process for supplier analysis in a marketmanagement framework;

FIG. 31 illustrates a screen displayed upon selection of the link to thestrategy development application;

FIG. 32 is a process for strategy development in a market managementframework;

FIG. 33 depicts a screen displayed upon selection of the link to theeNegotiation management application;

FIG. 34 is a flow diagram of a process for managing electronicnegotiations;

FIG. 35 depicts a screen that the buyer can use to invite suppliers of aparticular product to a negotiation;

FIG. 36 is a flowchart of a process for inviting suppliers tonegotiations in a market management framework;

FIG. 37 is a flowchart of a process for facilitating agreement creationin a market management framework;

FIG. 38 depicts a screen displaying a template that allows the buyer tocreate a notice of solicitation;

FIG. 39 is a process for monitoring negotiations in a market managementframework;

FIG. 40 is a flowchart of a process for affording a resource page; and

FIG. 41 depicts a process for affording project management in a marketmanagement framework.

DETAILED DESCRIPTION OF THE PREFERRED EMBODIMENTS

A preferred embodiment of a system in accordance with the presentinvention is preferably practiced in the context of a personal computersuch as an IBM compatible personal computer, Apple Macintosh computer orUNIX based workstation. A representative hardware environment isdepicted in FIG. 1, which illustrates a typical hardware configurationof a workstation in accordance with a preferred embodiment having acentral processing unit 110, such as a microprocessor, and a number ofother units interconnected via a system bus 112. The workstation shownin FIG. 1 includes a Random Access Memory (RAM) 114, Read Only Memory(ROM) 116, an I/O adapter 118 for connecting peripheral devices such asdisk storage units 120 to the bus 112, a user interface adapter 122 forconnecting a keyboard 124, a mouse 126, a speaker 128, a microphone 132,and/or other user interface devices such as a touch screen (not shown)to the bus 112, communication adapter 134 for connecting the workstationto a communication network (e.g., a data processing network) and adisplay adapter 136 for connecting the bus 112 to a display device 138.The workstation typically has resident thereon an operating system suchas the Microsoft Windows NT or Windows/95 Operating System (OS), the IBMOS/2 operating system, the MAC OS, or UNIX operating system. Thoseskilled in the art will appreciate that the present invention may alsobe implemented on platforms and operating systems other than thosementioned.

A preferred embodiment is written using JAVA, C, and the C++ languageand utilizes object oriented programming methodology. Object orientedprogramming (OOP) has become increasingly used to develop complexapplications. As OOP moves toward the mainstream of software design anddevelopment, various software solutions require adaptation to make useof the benefits of OOP. A need exists for these principles of OOP to beapplied to a messaging interface of an electronic messaging system suchthat a set of OOP classes and objects for the messaging interface can beprovided.

OOP is a process of developing computer software using objects,including the steps of analyzing the problem, designing the system, andconstructing the program. An object is a software package that containsboth data and a collection of related structures and procedures. Sinceit contains both data and a collection of structures and procedures, itcan be visualized as a self-sufficient component that does not requireother additional structures, procedures or data to perform its specifictask. OOP, therefore, views a computer program as a collection oflargely autonomous components, called objects, each of which isresponsible for a specific task. This concept of packaging data,structures, and procedures together in one component or module is calledencapsulation.

In general, OOP components are reusable software modules which presentan interface that conforms to an object model and which are accessed atrun-time through a component integration architecture. A componentintegration architecture is a set of architecture mechanisms which allowsoftware modules in different process spaces to utilize each otherscapabilities or functions. This is generally done by assuming a commoncomponent object model on which to build the architecture. It isworthwhile to differentiate between an object and a class of objects atthis point. An object is a single instance of the class of objects,which is often just called a class. A class of objects can be viewed asa blueprint, from which many objects can be formed.

OOP allows the programmer to create an object that is a part of anotherobject. For example, the object representing a piston engine is said tohave a composition-relationship with the object representing a piston.In reality, a piston engine comprises a piston, valves and many othercomponents; the fact that a piston is an element of a piston engine canbe logically and semantically represented in OOP by two objects.

OOP also allows creation of an object that “depends from” anotherobject. If there are two objects, one representing a piston engine andthe other representing a piston engine wherein the piston is made ofceramic, then the relationship between the two objects is not that ofcomposition. A ceramic piston engine does not make up a piston engine.Rather it is merely one kind of piston engine that has one morelimitation than the piston engine; its piston is made of ceramic. Inthis case, the object representing the ceramic piston engine is called aderived object, and it inherits all of the aspects of the objectrepresenting the piston engine and adds further limitation or detail toit. The object representing the ceramic piston engine “depends from” theobject representing the piston engine. The relationship between theseobjects is called inheritance.

When the object or class representing the ceramic piston engine inheritsall of the aspects of the objects representing the piston engine, itinherits the thermal characteristics of a standard piston defined in thepiston engine class. However, the ceramic piston engine object overridesthese ceramic specific thermal characteristics, which are typicallydifferent from those associated with a metal piston. It skips over theoriginal and uses new functions related to ceramic pistons. Differentkinds of piston engines have different characteristics, but may have thesame underlying functions associated with it (e.g., how many pistons inthe engine, ignition sequences, lubrication, etc.). To access each ofthese functions in any piston engine object, a programmer would call thesame functions with the same names, but each type of piston engine mayhave different/overriding implementations of functions behind the samename. This ability to hide different implementations of a functionbehind the same name is called polymorphism and it greatly simplifiescommunication among objects.

With the concepts of composition-relationship, encapsulation,inheritance and polymorphism, an object can represent just aboutanything in the real world. In fact, one's logical perception of thereality is the only limit on determining the kinds of things that canbecome objects in object-oriented software. Some typical categories areas follows:

-   -   Objects can represent physical objects, such as automobiles in a        traffic-flow simulation, electrical components in a        circuit-design program, countries in an economics model, or        aircraft in an air-traffic-control system.    -   Objects can represent elements of the computer-user environment        such as windows, menus or graphics objects.    -   An object can represent an inventory, such as a personnel file        or a table of the latitudes and longitudes of cities.    -   An object can represent user-defined data types such as time,        angles, and complex numbers, or points on the plane.

With this enormous capability of an object to represent just about anylogically separable matters, OOP allows the software developer to designand implement a computer program that is a model of some aspects ofreality, whether that reality is a physical entity, a process, a system,or a composition of matter. Since the object can represent anything, thesoftware developer can create an object which can be used as a componentin a larger software project in the future.

If 90% of a new OOP software program consists of proven, existingcomponents made from preexisting reusable objects, then only theremaining 10% of the new software project has to be written and testedfrom scratch. Since 90% already came from an inventory of extensivelytested reusable objects, the potential domain from which an error couldoriginate is 10% of the program. As a result, OOP enables softwaredevelopers to build objects out of other, previously built objects.

This process closely resembles complex machinery being built out ofassemblies and sub-assemblies. OOP technology, therefore, makes softwareengineering more like hardware engineering in that software is builtfrom existing components, which are available to the developer asobjects. All this adds up to an improved quality of the software as wellas an increased speed of its development.

Programming languages are beginning to fully support the OOP principles,such as encapsulation, inheritance, polymorphism, andcomposition-relationship. With the advent of the C++ language, manycommercial software developers have embraced OOP. C++ is an OOP languagethat offers a fast, machine-executable code. Furthermore, C++ issuitable for both commercial-application and systems-programmingprojects. For now, C++ appears to be the most popular choice among manyOOP programmers, but there is a host of other OOP languages, such asSmalltalk, Common Lisp Object System (CLOS), and Eiffel. Additionally,OOP capabilities are being added to more traditional popular computerprogramming languages such as Pascal.

The benefits of object classes can be summarized, as follows:

-   -   Objects and their corresponding classes break down complex        programming problems into many smaller, simpler problems.    -   Encapsulation enforces data abstraction through the organization        of data into small, independent objects that can communicate        with each other. Encapsulation protects the data in an object        from accidental damage, but allows other objects to interact        with that data by calling the object's member functions and        structures.    -   Subclassing and inheritance make it possible to extend and        modify objects through deriving new kinds of objects from the        standard classes available in the system. Thus, new capabilities        are created without having to start from scratch.    -   Polymorphism and multiple inheritance make it possible for        different programmers to mix and match characteristics of many        different classes and create specialized objects that can still        work with related objects in predictable ways.    -   Class hierarchies and containment hierarchies provide a flexible        mechanism for modeling real-world objects and the relationships        among them.    -   Libraries of reusable classes are useful in many situations, but        they also have some limitations. For example:    -   Complexity. In a complex system, the class hierarchies for        related classes can become extremely confusing, with many dozens        or even hundreds of classes.    -   Flow of control. A program written with the aid of class        libraries is still responsible for the flow of control (i.e., it        must control the interactions among all the objects created from        a particular library). The programmer has to decide which        functions to call at what times for which kinds of objects.

Duplication of effort. Although class libraries allow programmers to useand reuse many small pieces of code, each programmer puts those piecestogether in a different way. Two different programmers can use the sameset of class libraries to write two programs that do exactly the samething but whose internal structure (i.e., design) may be quitedifferent, depending on hundreds of small decisions each programmermakes along the way. Inevitably, similar pieces of code end up doingsimilar things in slightly different ways and do not work as welltogether as they should.

Class libraries are very flexible. As programs grow more complex, moreprogrammers are forced to reinvent basic solutions to basic problemsover and over again. A relatively new extension of the class libraryconcept is to have a framework of class libraries. This framework ismore complex and consists of significant collections of collaboratingclasses that capture both the small scale patterns and major mechanismsthat implement the common requirements and design in a specificapplication domain. They were first developed to free applicationprogrammers from the chores involved in displaying menus, windows,dialog boxes, and other standard user interface elements for personalcomputers.

Frameworks also represent a change in the way programmers think aboutthe interaction between the code they write and code written by others.In the early days of procedural programming, the programmer calledlibraries provided by the operating system to perform certain tasks, butbasically the program executed down the page from start to finish, andthe programmer was solely responsible for the flow of control. This wasappropriate for printing out paychecks, calculating a mathematicaltable, or solving other problems with a program that executed in justone way.

The development of graphical user interfaces began to turn thisprocedural programming arrangement inside out. These interfaces allowthe user, rather than program logic, to drive the program and decidewhen certain actions should be performed. Today, most personal computersoftware accomplishes this by means of an event loop which monitors themouse, keyboard, and other sources of external events and calls theappropriate parts of the programmer's code according to actions that theuser performs. The programmer no longer determines the order in whichevents occur. Instead, a program is divided into separate pieces thatare called at unpredictable times and in an unpredictable order. Byrelinquishing control in this way to users, the developer creates aprogram that is much easier to use. Nevertheless, individual pieces ofthe program written by the developer still call libraries provided bythe operating system to accomplish certain tasks, and the programmermust still determine the flow of control within each piece after it'scalled by the event loop. Application code still “sits on top of” thesystem.

Even event loop programs require programmers to write a lot of code thatshould not need to be written separately for every application. Theconcept of an application framework carries the event loop conceptfurther. Instead of dealing with all the nuts and bolts of constructingbasic menus, windows, and dialog boxes and then making these things allwork together, programmers using application frameworks start withworking application code and basic user interface elements in place.Subsequently, they build from there by replacing some of the genericcapabilities of the framework with the specific capabilities of theintended application.

Application frameworks reduce the total amount of code that a programmerhas to write from scratch. However, because the framework is really ageneric application that displays windows, supports copy and paste, andso on, the programmer can also relinquish control to a greater degreethan event loop programs permit. The framework code takes care of almostall event handling and flow of control, and the programmer's code iscalled only when the framework needs it (e.g., to create or manipulate aproprietary data structure).

A programmer writing a framework program not only relinquishes controlto the user (as is also true for event loop programs), but alsorelinquishes the detailed flow of control within the program to theframework. This approach allows the creation of more complex systemsthat work together in interesting ways, as opposed to isolated programs,having custom code, being created over and over again for similarproblems.

Thus, as is explained above, a framework basically is a collection ofcooperating classes that make up a reusable design solution for a givenproblem domain. It typically includes objects that provide defaultbehavior (e.g., for menus and windows), and programmers use it byinheriting some of that default behavior and overriding other behaviorso that the framework calls application code at the appropriate times.

There are three main differences between frameworks and class libraries:

-   -   Behavior versus protocol. Class libraries are essentially        collections of behaviors that you can call when you want those        individual behaviors in your program. A framework, on the other        hand, provides not only behavior but also the protocol or set of        rules that govern the ways in which behaviors can be combined,        including rules for what a programmer is supposed to provide        versus what the framework provides.    -   Call versus override. With a class library, the code the        programmer instantiates objects and calls their member        functions. It's possible to instantiate and call objects in the        same way with a framework (i.e., to treat the framework as a        class library), but to take full advantage of a framework's        reusable design, a programmer typically writes code that        overrides and is called by the framework. The framework manages        the flow of control among its objects. Writing a program        involves dividing responsibilities among the various pieces of        software that are called by the framework rather than specifying        how the different pieces should work together.        -   Implementation versus design. With class libraries,            programmers reuse only implementations, whereas with            frameworks, they reuse design. A framework embodies the way            a family of related programs or pieces of software work. It            represents a generic design solution that can be adapted to            a variety of specific problems in a given domain. For            example, a single framework can embody the way a user            interface works, even though two different user interfaces            created with the same framework might solve quite different            interface problems.

Thus, through the development of frameworks for solutions to variousproblems and programming tasks, significant reductions in the design anddevelopment effort for software can be achieved. A preferred embodimentof the invention utilizes HyperText Markup Language (HTML) to implementdocuments on the Internet together with a general-purpose securecommunication protocol for a transport medium between the client and theNewco. HTTP or other protocols could be readily substituted for HTMLwithout undue experimentation. Information on these products isavailable in T. Berners-Lee, D. Connoly, “RFC 1866: Hypertext MarkupLanguage-2.0” (November 1995); and R. Fielding, H, Frystyk, T.Berners-Lee, J. Gettys and J. C. Mogul, “Hypertext TransferProtocol—HTTP/10.1: HTTP Working Group Internet Draft” (May 2, 1996).HTML is a simple data format used to create hypertext documents that areportable from one platform to another. HTML documents are SGML documentswith generic semantics that are appropriate for representing informationfrom a wide range of domains. HTML has been in use by the World-Wide Webglobal information initiative since 1990. HTML is an application of ISOStandard 8879; 1986 Information Processing Text and Office Systems;Standard Generalized Markup Language (SGML).

To date, Web development tools have been limited in their ability tocreate dynamic Web applications which span from client to server andinteroperate with existing computing resources. Until recently, HTML hasbeen the dominant technology used in development of Web-based solutions.However, HTML has proven to be inadequate in the following areas:

-   -   Poor performance;    -   Restricted user interface capabilities;    -   Can only produce static Web pages;    -   Lack of interoperability with existing applications and data;        and    -   Inability to scale.

Sun Microsystem's Java language solves many of the client-side problemsby:

-   -   Improving performance on the client side;    -   Enabling the creation of dynamic, real-time Web applications;        and    -   Providing the ability to create a wide variety of user interface        components.

With Java, developers can create robust User Interface (UI) components.Custom “widgets” (e.g., real-time stock tickers, animated icons, etc.)can be created, and client-side performance is improved. Unlike HTML,Java supports the notion of client-side validation, offloadingappropriate processing onto the client for improved performance.Dynamic, real-time Web pages can be created. Using the above-mentionedcustom UI components, dynamic Web pages can also be created.

Sun's Java language has emerged as an industry-recognized language for“programming the Internet.” Sun defines Java as: “a simple,object-oriented, distributed, interpreted, robust, secure,architecture-neutral, portable, high-performance, multithreaded,dynamic, buzzword-compliant, general-purpose programming language. Javasupports programming for the Internet in the form ofplatform-independent Java applets.” Java applets are small, specializedapplications that comply with Sun's Java Application ProgrammingInterface (API) allowing developers to add “interactive content” to Webdocuments (e.g., simple animations, page adornments, basic games, etc.).Applets execute within a Java-compatible browser (e.g., NetscapeNavigator) by copying code from the server to client. From a languagestandpoint, Java's core feature set is based on C++. Sun's Javaliterature states that Java is basically, “C++ with extensions fromObjective C for more dynamic method resolution.”

Another technology that provides similar function to JAVA is provided byMicrosoft and ActiveX Technologies, to give developers and Web designerswherewithal to build dynamic content for the Internet and personalcomputers. ActiveX includes tools for developing animation, 3-D virtualreality, video and other multimedia content. The tools use Internetstandards, work on multiple platforms, and are being supported by over100 companies. The group's building blocks are called ActiveX Controls,small, fast components that enable developers to embed parts of softwarein hypertext markup language (HTML) pages. ActiveX Controls work with avariety of programming languages including Microsoft Visual C++, BorlandDelphi, Microsoft Visual Basic programming system and, in the future,Microsoft's development tool for Java, code named “Jakarta.” ActiveXTechnologies also includes ActiveX Server Framework, allowing developersto create server applications. One of ordinary skill in the art readilyrecognizes that ActiveX could be substituted for JAVA without undueexperimentation to practice the invention.

FIG. 2 is a process flow diagram of a procurement process in anelectronic commerce setting in accordance with an embodiment of thepresent invention. The procurement process includes a four step sourcingmanagement process 200. Such sourcing process enables the business(buyer) to create an effective strategy for purchasing direct orindirect materials, services, or capital goods. The four step sourcingprocess includes category analysis 202, supplier analysis 204, strategydevelopment 206, and solution management 208. More detail about thesourcing process will be set forth below.

Upon performance of the sourcing process, a cyclic order process 210 isperformed. An order is placed in operation 212 and received in operation214. The order is paid for in operation 216. Requisition and approvalare performed in operation 218. Any problems encountered duringrequisition and approval can result in a new order being placed. Itshould be kept in mind that these operations may be performed in anyorder.

The procurement process also includes a tracking process 220 fortracking orders. The tracking process includes tracking of post officeprocessing 222, providing order status reports 224, receiving processes226, etc.

FIG. 3 illustrates a process 300 for affording a market managementframework in accordance with an embodiment of the present invention. Inoperation 302, category analysis is provided for a user specifiedproject. In operation 304, supplier analysis is performed for the userspecified project. A strategy is then developed in operation 306 fordetermining the suppliers for the specified project based on thesupplier analysis. Further, in operation 308, negotiations are managedbetween selected suppliers and the user.

In one aspect of the present invention, providing category analysisincludes identifying a file including expenditure data relating to spentmonies, extracting the expenditure data from the file, determining anindependent and a dependent variable relating to the expenditure data,graphing the expenditure data based on the determined variables, anddisplaying conclusions based on the expenditure data.

In another aspect of the present invention, performing supplier analysisincludes providing access to a database including supplier profile data,identifying supply chain relationships based on particular commoditiesand the supplier profile data, generating a report depicting theidentified supply chain relationships, allowing users to create requestfor information for specified suppliers based on the generated report,and distributing the created request for information to the specifiedsuppliers.

In yet another aspect of the present invention, developing a strategyfor determining the suppliers includes allowing a user to dynamicallycreate a request for quote document, grouping specific request for quoteline items based on a request from the user, enabling the user to attachfurther data to the request for quote document, and distributing therequest for quote document to specific suppliers.

In a further aspect of the present invention, managing negotiationsincludes allowing a user to post an electronic request for quote on awebsite, affording selected suppliers access to the request for quote onthe website, supporting electronic negotiations between the user and aselected supplier, and facilitating post-negotiation analysis via adecision matrix.

FIG. 4 illustrates a chart 400 of several sourcing strategies, includingshopping 402, finding a niche 404, partnering 406, and leveraging 408.An example of a shopping strategy includes acquiring the resources,products, etc. from a variety of supplying companies when needed. Asshown by the chart, a shopping strategy has a low value to a businessbecause the company may be forced to pay market value for the neededgoods. However, a shopping strategy makes it easier to acquire a supplyof resources, products, etc. because the business is not reliant on asingle supplier to meet supply requirements.

Finding a niche has a low value to business and a high difficulty ofsupply. Limiting the business to a particular niche severely hinders theexpandability of the business into new markets. Further, specializedproducts may not be readily available, or may have a high market value.

Partnering with a supplier has a high value to the business, because thebusiness is able to negotiate a lower price for goods supplied by thepartner supplier. However, partnering makes acquiring the goods moredifficult in that the business is reliant upon the supplier fordelivering the goods.

A leveraging approach has a high value to the business, and a lowdifficulty of supply. For example, the business can partner with asupplier to receive goods at a reduced price, and can shop for goodsthat are not forthcoming or that are not supplied by the partner.

FIG. 5 depicts a multi-tiered sourcing management process 500 inaccordance with an embodiment of the present invention. According tothis process, supplier and information strategy is balanced with anegotiation strategy to allow a business to create a reliable supplychain while minimizing costs, leading to maximized profits and customersatisfaction. Incumbent and qualified suppliers 502 are negotiated withprivately and may even be made a partner with the business.

The business is able to leverage its supply between the incumbent andqualified suppliers and new suppliers 504 by private negotiation as wellas advertising and sometimes reverse auctions and exchanges. Supply ofniche products can be obtained from new suppliers and obtained on theInternet from emarkets 506. Private offers can be made to the newsuppliers while reverse auctions and exchanges can be used to obtain theniche products from emarkets. Additionally, the business can shop forgoods using the emarkets.

FIG. 6 depicts a sourcing process (see also FIG. 2) for multi-tieredmarket management in accordance with one embodiment of the presentinvention. A category analysis is performed to determine what goods arerequired to meet current and/or future business demands. The categoryanalysis allows users to leverage analytical tools to integrate internalspend and usage data with external market research, to attain a fullunderstanding of commodity specific economics and trends.

When performing the category analysis, spending and usage data isretrieved from a data warehouse of the business. The business also usesmarket intelligence to check directories and infomediaries for newsuppliers. A forecast of goods requirements is performed. Further, aspending and cost analysis is performed.

Supplier analysis assists a buyer to identify potential supply sourcesand enables collaboration with suppliers to help assess suppliercapabilities to deliver “total cost” savings. During supplier analysis,suppliers at various tiers (see FIG. 5) are identified and an analysisof each supplier is performed to determine which supplier can providethe desired goods and at what price. Also, capabilities of the suppliersto meet requirements and adapt to changing requirements are analyzed. Areliability of the supplier can also be analyzed. The process of FIG. 4can be used in this analysis.

Strategy development enables a buyer to determine total system costcomponents and decision criteria to select a supplier or suppliers.Strategy development will determine the strategic alignment betweenpotential suppliers and the buyer, and the terms of the contract. Astrategy for obtaining goods at the lowest price is developed duringstrategy development. A total cost analysis can also be performed, asdiscussed below with reference to FIG. 7.

In negotiations management, techniques for the negotiations for goodsare developed and analyzed. Here, buyers have visibility and controlover all aspects of negotiation events, including scheduling, bidding,analysis, and award.

FIG. 7 shows several components of a total cost analysis for privateoffer and reverse auctions. One element is purchase price 702. Thepurchase price is determined based on a supplier cost structure, gainshare, and performance incentives.

Another element is usage 704. Usage data includes part specifications,the cost of standardization, transportation costs, and scrap costs. Yetanother element is administrative and processing costs 706. This elementincludes quality and performance data, post office processing costs, thecosts of invoicing, and the costs of processing payables.

Accordingly, portions of the embodiments of the present invention setforth above with respect to FIGS. 2-7 can be combined to create aStrategic eSourcing Management solution/system (SSM). Customized userinterfaces (described below) can be utilized to leverage the emergingInternet economy. The capability to create a strategic procurementorganization is enhanced. Savings capture is accelerated. Further,resource requirements for information technology are low. The result isa sustainable capability to achieve the lowest total cost of ownership.

One embodiment of the SSM creates a subscription-based solution thatseamlessly blends enabling services, performance support, andapplication tools. As shown in FIG. 8, this illustrative embodimentincludes three components: system activation 802, system operation 804,and buyer support services 806. System activation takes place one time.During system activation, enabling software is implemented. Thissoftware includes accounting software, tracking software, Internetsoftware and/or user interface software. The system of the business isconfigured for the new capabilities enabled by SSM. Users and employeesare trained and commodity templates are developed.

Once the system is activated, the system begins to operate. Services tomaintain the system can be offered on a subscription basis. Suchservices can include application hosting services, such as web sitehosting. Software upgrades can also be made available. Further,technical support can be offered.

Support services are also offered. Such support services may includeon-line consulting services, trading community management, contentmanagement and trading floor management.

FIG. 9 depicts elements of a buyer support system 900 that may beutilized to offer the support services described above with reference toFIG. 8. One element includes process guides 902. The process guidesinclude business process coaching, sample content, historical data, anddownloadable forms. Another element is industry and category knowledge904. This element includes commodity and industry templates, examples,links to external websites, white papers, recommendations of bestpractices, and case studies. An on-line buyer support element 906 isalso offered, which includes online customer help and support. Anotherelement is on-site buyer support. Such support services includetraining, consulting, and implementation services. Upgrades andmaintenance 908 are also provided.

FIG. 10 illustrates the total cost analysis process in operation with anSSM process with corresponding application modules 1002 and performanceservices 1004. A research and planning module 1006 is utilized forcategory analysis. This module analyzes internal spending and usage. Italso performs supply market research. Some of the performance servicesassociated with category analysis and preferably offered by subscriptionto a business implement SSM include industry analysis, commodity trends,and case studies.

A collaboration module 1008 is utilized during supplier analysis. Thecollaboration module provides an eSourcing extranet, RFI management, andsupplier conferencing. Performance services that can be offered duringsupplier analysis include community management services. The communitymanagement services may include supplier implementation services,supplier assessments, and supplier conferencing services.

During strategy development, a performance support module 1010 providesbid history reporting and archiving, a template library, and total costcreation. Content management services can be offered, such as templatecreation.

A decision support module 1012 is utilized during eNegotiationmanagement. The decision support module provides event monitoring,analyzes awards and bids, and creates management reports. Trading floormanagement services can be offered, including notification services,distribution services, and event governance and monitoring.

FIG. 11 depicts an architecture 1100 of the SSM in accordance with apreferred embodiment. The architecture is a scalable web-basedapplication for strategic sourcing and provides reliability,scalability, usability, and flexible access. One tier includes a datamanagement server 1102 that can be used to store accounting data,inventories, shipping management, etc. Another tier includes anapplication server 1104. A web server 1106 forms part of another tier,while a web client 1108 forms part of yet another tier.

FIG. 12 depicts an illustrative timeline 1200 for implementation of anSSM system. As shown, the target categories are selected in the firsttwo weeks. Meanwhile, implementing software is set up on the business'ssystem. Functional teams are created in the second and third weeks. Alsoduring the second week, conversion of the business's system andoperating procedures to be compliant with the SSM system and solution isperformed. Training of the business's employees on how to utilize theSSM system and methodology takes place in the second and third weeks, asdoes target supplier setup. Any additional supplier setup begins in week4. This, of course, will depend upon a quantity of goods to be supplied.

The eSourcing management process begins in the third week beginning withcategory analysis, which is performed during the third and fourth weeks.Supplier analysis begins in week four, while strategy development beginsin the seventh week, preferably upon conclusion of the supplieranalysis. eNegotiation management begins in week nine, preferably aftera sourcing strategy is developed Implementation of the eSourcingstrategy takes place beginning in week eleven. It should be kept in mindthat the timeline of FIG. 12 is for illustrative purposes only, as thetime to perform the various steps may vary from business to business.

FIG. 13 depicts a process flow 1300 of the SSM in accordance with apreferred embodiment of the present invention. In operation 1302, thebuyer prepares to purchase goods from a supplier. The goods desired aredefined in operation 1304 and reviewed in operation 1306. A request forgoods is posted in operation 1308, preferably including a desired price.In operation 1310, the supplier reviews the request and, in operation1312, prepares to submit a bid. The supplier submits a bid in operation1314, upon which the buyer reviews the bid in operation 1316. If the bidis acceptable, the buyer awards a purchase contract to the buyer inoperation 1318. In operation 1320, the supplier reviews the offer. Ifthe bid or the offer for purchase is unacceptable, negotiations occuruntil the parties agree to a price. The process ends at 1322.

FIG. 14 illustrates several total cost of ownership components, which acompany can manipulate to achieve lower total cost through strategiceSourcing utilizing the SSM system and process. The administrative andprocess component 1402 includes quality assurance, post officeprocessing, invoicing and payables. The usage component 1404 includespart specifications, standardization, transportation, scrap, and lifecycle. The purchase price element 1406 includes supplier cost structure,gain sharing, and performance incentives.

FIG. 15 depicts a chart 1500 showing an illustrative allocation schemefor purchasing professional time. Preferably, the about half of theprofessional time purchased is focused on sourcing. Here, as shown inthe chart, source selection, product research, and negotiation compriseabout half of the professional time.

FIG. 16 illustrates a progression for building internal eSourcingcapabilities. Information 1602 is gathered. Information may be gatheredfrom sources such as internal databases, market sites, andinfomediaries. The information is used to create knowledge 1604. Theknowledge created can be utilized for fact based negotiation andcollaboration. Knowledge leads to competence 1606. The competence isused for learning and taking action, leading to lowered costs.

The reasons more buyers are going online to obtain supplies include:

Lower prices

-   -   Ability to analyze spend    -   Ability to comparison shop    -   Volume discounts through spend consolidation    -   On-line bidding dynamics    -   Accelerate savings        Improve and sustain compliance    -   Monitor and control spending    -   Better supplier qualification and management processes reduce        transaction costs    -   Go paperless    -   Freeing buyer's time

FIG. 17 is a depiction of the main elements of a business to businesseCommerce architecture 1700 in accordance with one embodiment of thepresent invention. A web enabled enterprise structure includes a financeand administration component 1702, a product sales infrastructure 1704,and an Internet technology infrastructure 1706. The second element ofthe business to business eCommerce architecture is an eBusinessinfrastructure 1708. The infrastructure is used to create vertical andhorizontal sales portals and marketplaces.

FIG. 18 illustrates an SSM process 1800 in accordance with anotherembodiment of the present invention. Spending is quantified in operation1802. Spending data can be obtained form a spending database and apurchasing module. In operation 1804, supply markets are assessed.Suppliers are identified and quantified in operation 1806. Suppliereconomics are also assessed in operation 1806. In operation 1808, asourcing strategy is set. In operation 1810, negotiations take place anda contract for purchase is awarded. An order is placed in operation1812, and suppliers are managed and developed in operation 1814.

FIG. 19 illustrates a reverse auctioning system 1900 in accordance withan embodiment of the present invention. An auction house 1902 hosts anonline reverse auction. An on-site buyer 1904 participates, as doseveral off-site suppliers 1906. Efficiencies created by electronicbidding include real-time competitive bidding between supplierparticipants in competitive bidding events

-   -   Lower prices, driven by open market competition    -   Low cost, computer-driven sales and purchasing

FIG. 20 depicts a flowchart of a method 2000 for a reverse auction inaccordance with an optional embodiment of the present invention. Inoperation 2002 a computer database of purchase offer information ismaintained. The different purchase offers to be auctioned are identifiedin operation 2004, and in operation 2006 a designated time for thepurchase offer to be auctioned is assigned to each purchase offer. Thepurchase offer and the designated time of the auction are promoted inoperation 2008 prior to the auction to increase awareness of thepurchase offer. In operation 2010, an auction is carried out at thedesignated time by setting a fixed time period for completing theauction.

FIG. 21 depicts a process 2100 for carrying out the auction of operation2010 of FIG. 20. In operation 2102, a current price for the purchaseoffer is displayed and the price of the purchase offer is decreased asthe time remaining in the auction decreases. The purchase offer ispreferably divisible to allow several suppliers to accept portions ofthe offer and supply only the quantity or type of goods or servicespertinent to that portion. In operation 2104, the quantity of thepurchase offer remaining to be auctioned is displayed and the desiredquantity of goods sought to be purchased is decreased to reflect, duringthe auction process, instructions from suppliers of their desire toaccept the purchase offer as the instructions are received therebyproviding dynamic feedback to potential suppliers during the auction. Inoperation 2106, each potential supplier is provided with a designatedactuation control for instructing the computer site of the decision toaccept the purchase offer at the current price at the time of receivingthe instructions. In operation 2108, financial data is obtained andrecorded for automated payment for goods purchased under an acceptedpurchase offer.

In a variation, the process of FIG. 21 includes removing each supplierfrom the auction process upon providing instructions to accept thepurchase offer at the displayed current price at the time theinstructions were received. In this way the supplier is not exposed tofurther decreases in the price of the purchase offer, and is removedfrom that particular auction process.

In another variation, the process of FIG. 21 includes registration ofthe supplier or potential suppliers which can take place as part of apre-registration process. The registration process can occur on-line orcan be carried out off-line.

According to a further variation of the invention, the process of FIG.21 includes connecting the computer site directly to separate anddistinct financial institutes for real time confirmation of acceptablefinancial transaction of the purchase price of goods under an acceptedpurchase offer. In this way, automated payment confirmation is carriedout.

A computer site for reverse auctioning for purchase of goods on-lineaccording to the present invention includes at least one web servercomputer designed for serving a host of computer browsers and providingsaid browsers with the capability to participate in various auctions,where each auction is of a single purchase offer, at a specified time,with a specified number of the goods under the purchase offer availablefor sale. The web server cooperates with a separate database computer,separated from the web server computer by a firewall. The databasecomputer is accessible to the web computer server computer to allowselective retrieval of purchase offer information.

Assuming the supplier wishes to confirm the purchase of goods/servicesunder the purchase offer, the database server takes the financialinformation of the buyer and sends the pertinent information to the banksystem for immediate authorization. Real time feedback is preferablyprovided directly to the supplier. If the transaction is turned down forany reason and the auction process remains in process, the quantityfigure is appropriately adjusted higher. This quantity figure wasdecreased once the supplier indicated his desire to accept the purchaseoffer.

If the transaction is authorized, then E-mail confirmation is sent bythe mail server to the supplier. If the transaction is not authorized,this can also be indicated to the supplier by E-mail. With the presentsystem, it can be appreciated that although the supplier participates inthe auction process, the actual commitment to accept the purchase offeris not made until full costs are known, including the freight costs andappropriate taxes. If the supplier decides not to accept the portion ofthe purchase offer, the portion of the purchase offer is returned to theauction if the auction is still in progress. It can also be appreciatedfrom the above description that the supplier is removed from the auctionprocess as soon as a commitment to purchase is made. In this way, thefinal, or lowest price of the product is not known to the supplier.

The database server cooperates with each of the web server computers toallow for the rapid feed of information to the web server computersnecessary to allow the supplier to be exposed to the dynamic nature ofthe auction. This dynamic feedback includes the results of multiplesuppliers with feedback occurring in seconds as opposed to minutes hoursor days. It also allows the auction system to respond to a host ofsimultaneous triggers. Each web server is individually servicing manysuppliers. Many different auctions can be occurring at the same time andtherefore each web server provides the appropriate feed back to eachsupplier.

The supplier's identity is also used to confirm that he was qualified toparticipate within the auction. Once the identity is known,non-qualified participants can be so advised and the indication toaccept cancelled.

Another feature of the auction system is the ability to track the pricedemand nature of the product described in the purchase offer. Thisprovides valuable marketing information to the manufacturer. Forexample, in trying to determine the response at different prices,companies have to conduct various tests. In contrast with typicalauction systems, a lot of information regarding price and demand isimmediately known. The relationship between this type of supplier andthe average supplier can then be applied to provide a conventional pricedemand curve for the particular product. It can readily be appreciatedthat the computer system provides the demand price curve. In order toprovide good feedback to suppliers supporting the standard HTML 2.0 typebrowser, only a single auction screen is provided which has the numberof units remaining to be purchased, the current price and the timeremaining in the auction. This type of browser is slower, but it doesprovide for relatively rapid feedback during the auction process.

The web server computers are application based and build each page asrequested by a buyer. Large volumes of requests can be handled veryquickly. Individual requests are serviced by the system within 70milliseconds with loads up to about 90% capacity. At this pointperformance drops off and an additional web server is added which runsthe same software to assume additional load.

The system for the auction process responds to actuation of the triggerto update the acceptances and to remove the supplier from the auctionprocess. The additional information is gathered in a less demandingenvironment. The actual dynamic variables of the auction are currentprice, quantity remaining and time remaining are refreshed at a fastrate (typically between 5 and 10 seconds).

The present system is designed to allow many suppliers to participate inthe auction process and rapidly process and provide feedback ofacceptance of offers to buy as they are indicated many times within thelast minutes of the auction. This requires the capability to rapidlyprocess information and provide rapid updates to all suppliers. Withthis arrangement the dynamic nature of a reverse auction where suppliersare all present at the same location is provided without all suppliersbeing physically present in one location. FIG. 22 illustrates a frontpage of a graphical user interface 2200 of an SSM system in accordancewith a preferred embodiment of the present invention. As shown, a link2202 to a commodity analysis application is provided, as is a link 2204to a supplier analysis application. Links 2206,2208 to strategydevelopment and eNegotiation management applications are also displayed.Other links include a link 2210 to a calendar and links 2212,2214 toproject creation and modification applications.

FIG. 23 depicts a screen 2300 displayed upon selection of the link tothe commodity analysis application, which is preferably integrated withdata warehousing or Accounts Payable systems. Here, spending data iscollected. Existing worksheets and graphs can be attached to a datareport created by the application. By selecting the browse button 2302,such worksheets and graphs can be selected from a data repository. Uponselecting the desired graph, the attach button 2304 is selected.Finally, the launch button 2306 is selected to launch the commodityanalysis application. Help information can be displayed upon selectionof the coach button 2308.

FIG. 24 illustrates a second screen 2400 displayed upon selection of thelaunch button of the screen shown in FIG. 23. This screen allows a buyerto create graphs of internal spending and usage. Options are providedfor user-selection and the graphs are generated upon selection of thecreate graphs button 2402. In this example, Total Expenditure bysuppliers and Price and Distribution (units purchased) are selected.

FIG. 25 depicts graphs 2500,2502 created upon selection of the creategraphs button. One graph shows a fragmented supply base, the other showsvariable pricing for like SKUs.

FIG. 26 illustrates a screen 2600 displaying questions supplied toassist the buyer in interpreting the data generated by the commodityanalysis application. A field 2602 is provided for the buyer to enterits conclusions.

FIG. 27 is a flow diagram of a process 2700 for analyzing expendituresby category. A file including expenditure data relating to spent moniesis identified in operation 2702. The expenditure data from the file isextracted in operation 2704. In operation 2706, an independent and adependent variable relating to the expenditure data are determined. Theexpenditure data is graphed in operation 2708 based on the determinedvariables. In operation 2710, conclusions are displayed based on theexpenditure data.

In one embodiment of the present invention, a user may be allowed tocreate the file including expenditure data relating to spent monies. Inanother embodiment, the file may be based on a materials worksheet.Optionally, the file may be based on a services worksheet.

In one aspect of the present invention, the determined variables mayinclude price distribution and total expenditure by suppliers. Inanother aspect, the displayed conclusions may include recommended issuesto consider. Further, a user may be allowed to input conclusions aboutthe graphed expenditure data.

Now that the industry analysis is complete, the buyer assesses suppliercapabilities. FIG. 28 shows a screen 2800 displayed upon selection ofthe link to the supplier analysis application from the home page. Thesupplier analysis application creates a supplier survey which is postedon the internet. An email is sent to the supplier to notify them of theposting and due date. This screen includes several survey-type questionsthat the buyer poses to suppliers and corresponding fields2802,2804,2806,2808 that a potential supplier can fill in to answer thequestions in the hope of obtaining a purchase contract from the buyer.

Questions that either the buyer selected from a template or enteredhim/herself are answered by each supplier. FIG. 29 illustrates a screen2900 that summarizes the supplier responses. The buyer is able to selectspecific questions and associated responses to the questions fordisplay. This allows the buyer to select the responses it prefers in anorganized and easy to read format. The suppliers' responses aredisplayed on a response summary page (not shown).

Preferably, the buyer has already determined a negotiation strategybased on the internal, industry and supplier analyses. The buyer willwant to consolidate the suppliers and get some volume leverage, tie theprice to a paper index and will want to take advantage of pricedecreases as soon as it happens.

FIG. 30 is a flow diagram of a process 3000 for supplier analysis in amarket management framework. Access to a database including supplierprofile data is provided in operation 3002. Supply chain relationshipsare identified in operation 3004 based on particular commodities and thesupplier profile data. A report depicting the identified supply chainrelationships is generated in operation 3006. In operation 3008, usersare allowed to create request for information for specified suppliersbased on the generated report. The created request for information isdistributed to the specified suppliers in operation 3010.

In one embodiment of the present invention, each supplier profile mayinclude a classification, where the classification is selected from thegroup consisting of preferred, qualified, public, and internal. Inanother embodiment, the generated report may a bill of collaborators.Additionally, the generated report may further depict supplyrelationships through multiple tiers.

In one aspect of the present invention, the users may be allowed toreview supplier response to the request for information. Optionally, awizard interface may be utilized to assist users in creating request forinformation. In another aspect, links to web sites of additionalsuppliers may be created.

FIG. 31 illustrates a screen 3100 displayed upon selection of the linkto the strategy development application, which allows the buyer tocreate a terms and conditions sheet. This interface includes a field3102 that permits the user to select a template requesting materials(goods) or services. Terms and conditions for insertion in the templatecan be added from field 3104. The buyer is also able to enter a clausesspecific to this negotiation in field 3106. Upon selecting the template,terms and conditions, and filling in the description field, theconclusions button is selected to create the template and view strategyrecommendations.

By selecting the coach button 3108, the buyer can solicit suggestions onhow to approach the suppliers. Steps that outline the approach arereturned.

FIG. 32 is a process 3200 for strategy development in a marketmanagement framework. In operation 3202, a user is allowed todynamically create a request for quote document. Specific request forquote line items are grouped in operation 3204 based on a request fromthe user. In operation 3206, the user is enabled to attach further datato the request for quote document. The request for quote document isdistributed to specific suppliers in operation 3208.

In one embodiment of the present invention, the request for quotedocument may be created via wizard interface. Optionally, the wizardinterface may allow the user to access category specific templateshaving cost drivers. In addition, the attached data may include partsdrawings.

In one aspect of the present invention, the attached data may includeitem attributes information. In another aspect, the user may be allowedto determine negotiation event scheduling. Optionally, the user may beallowed to provide negotiation event notification.

FIG. 33 depicts a screen 3300 displayed upon selection of the link tothe eNegotiation management application. This interface assists thebuyer in managing its negotiations with a potential supplier(s) andshows a status of all tasks. Event definitions are displayed, preferablyin chronological order, as are event notifications. A number ofsuppliers selected for negotiations and/or for presentment with apurchase offer is also displayed. Additionally, a status of a summaryreport is displayed.

FIG. 34 is a flow diagram of a process 3400 for managing electronicnegotiations. In operation 3402, a user is allowed to post an electronicrequest for quote on a website. In operation 3404, selected suppliersare afforded access to the request for quote on the website. Electronicnegotiations are supported between the user and a selected supplier inoperation 3406. Post-negotiation analysis is facilitated in operation3408 via a decision matrix.

In one embodiment of the present invention, the website may be a securewebsite. Optionally, the website may be a 3^(rd) party website. Inanother embodiment, electronic invitation messages regarding the requestfor quote are provided to the selected suppliers.

In one aspect of the present invention, the negotiations may includeprivate offer negotiations, and total cost bidding with the selectedsupplier. In another aspect, the user can limit price visibility.

FIG. 35 depicts a screen 3500 that the buyer can use to invite suppliersof a particular product, corrugated packaging in this example, to anegotiation, preferably via email. The buyer selects suppliers byselecting a box 3502 associated with each supplier to be invited. A datethat the notification is to be sent is entered in field 3504. An offeredpurchase price can also be entered in field 3506. A summary 3508 is alsodisplayed, which lists the attachments, purchase offer, description ofthe goods or services desired, etc. that will be sent to the invitedsuppliers.

FIG. 36 is a flowchart of a process 3600 for inviting suppliers tonegotiations in a market management framework. A user is allowed to postan electronic request for quote on a website in operation 3602. Inoperation 3604, a list of suppliers capable of responding to the requestfor quote is displayed. The user is allowed to select suppliers from thelist of suppliers in operation 3606. Electronic invitation messagesregarding the request for quote are transmitted in operation 3608 to theselected suppliers. In operation 3610, selected suppliers are affordedaccess to the request for quote on the website.

In one embodiment of the present invention, the website may be a securewebsite. Optionally, the website may be a 3^(rd) party website. Inanother embodiment, electronic negotiations between the user and aselected supplier may be supported.

In one aspect of the present invention, the negotiations may includeprivate offer negotiations, and total cost bidding with the selectedsupplier. Further, the user may optionally limit price visibility.

FIG. 37 is a flowchart of a process 3700 for facilitating agreementcreation in a market management framework. A list of agreement templatesis provided in operation 3702. A list of agreement clauses is providedin operation 3704, where the agreement clauses are capable of modifyinga selected template. In operation 3706, a user is allowed to select anagreement template from the list of agreement templates. In operation3708, the selected agreement template is modified in response to userselection of specific agreement clauses from the list of agreementclauses.

In one embodiment of the present invention, a list of selected agreementclauses may be provided. In another embodiment, an agreement clause maybe removed from the list of selected agreement clauses in response to auser request. Optionally, modifications to the agreement template may beremoved based on the removed agreement clause.

In one aspect of the present invention, a description of a specificagreement clause may be displayed in response to a user request. Inanother aspect, coaching on agreement creation may be provided inresponse to a user request.

FIG. 38 depicts a screen 3800 displaying a template that allows thebuyer to create a notice of solicitation. As shown, several fieldsidentifying the buyer and seller, the goods desired, an offer, etc. arepresented. The buyer can also enter a message in field 3802.

FIG. 39 is a process 3900 for monitoring negotiations in a marketmanagement framework. In operation 3902, a user is allowed to post anelectronic request for quote on a website. Selected suppliers areafforded access to the request for quote on the website in operation3904. In operation 3906, electronic bids are received from the selectedsuppliers. The received electronic bids are graphed in operation 3908.In operation 3910, the lowest electronic bid is displayed separatelyfrom the graphed electronic bids, whereby identification of the lowestbid is facilitated.

In one embodiment of the present invention, the website may be a securewebsite. Optionally, the website may be a 3^(rd) party website.

In one aspect of the present invention, electronic invitation messagesregarding the request for quote may be provided to the selectedsuppliers. In addition, the electronic bids may include total cost bidswith the selected supplier. Further, the user may limit pricevisibility.

A Resources Page (not shown) can be accessed that has archived projects,white papers, best practices, case studies and weblinks. This way, thebuyer can do research without necessarily having created a project.Industry weblinks are shown by industry and are maintained and updatedby an SSM provider. The weblinks take the buyer to external websiteswhere it can gather industry news, relevant articles, info on newproducts, etc. If the buyer decides that he/she has too much to do, thebuyer can request an industry analysis from the SSM provider. The buyercan also ask the SSM provider for expert procurement advice to handlequestions or requests.

In an example, the buyer can also ask questions to request corrugatedpackaging pricing trend and market share info. The SSM provider replieswith pricing trend and market share information and graphs.

FIG. 40 is a flowchart of a process 4000 for affording a resource page.A database having information on various topics is provided in operation4002. Preferably, the database includes weblinks to related webpageshaving further information on the topics. In operation 4004, a user isallowed to search the database for information concerning a particulartopic. Information on the particular topic is displayed in operation4006, wherein the information displayed includes a weblink to furtherinformation on the particular topic. In operation 4008, a specificwebpage is displayed in response to the user selecting the weblink.

In one embodiment of the present invention, the database may includearchive projects. Optionally, the database may include white papers onselected topics. In another embodiment, the displayed weblinks may beorganized according to specific competitor/company information wherebythe user can obtain details on potential suppliers.

In one aspect of the present invention, the may user search the databaseusing a directory structure. Additionally, the database may includeinformation concerning suppliers.

In an interactive embodiment of the invention, an interactive system isimplemented over a distributed computer network. While in a preferredembodiment the network is the Internet, the invention is equallyapplicable to any distributed network, whether public or private.

A database contains information relating to the simulated merchants,goods being offered for sale, and user profiles. A management hostprocessor communicates with the database and with a database engine.Management host processor performs administrative and managementfunctions in maintaining the database, processing merchandise orders,and feeding real-time data to negotiating sessions. For example, theprocessor may include an interface to external data sources such as newswires, stock tickers, etc. Such information may be provided to the userduring a negotiating session as information of interest to the user.

The database engine is in communication with a server that is part of adistributed network, such as the Internet, and in particular the WorldWide Web. Database engine may be implemented as part of the server. Aclient is also part of the network. The client may be implemented by adesktop computer, laptop computer, or any other type of computer,including web browser software enabling the client to communicate withand receive and process data from the server.

The database preferably is a Relational Data Base Management System(RDBMS), as well known in the art.

The database engine is preferably implemented through the server. Thedatabase may communicate with the database engine and management hostprocessor through conventional Open Data Base Connectivity (ODBC)protocol, while the host processor may communicate with the databaseengine through TCP/IP (Transmission Control Protocol/Internet Protocol)protocol.

The database stores a plurality of information relating to users,merchants and merchandise, which is processed by the database engineduring live, interactive negotiating sessions with clients. The databaseincludes user profiles and history data, business rules and logic data,merchandise brand interface data, upsell interface data, merchantcharacter model behavior data, merchant character graphics data, amerchant dialogue generator, a product inventory interface, and abusiness reporting interface.

In a preferred embodiment, the system Web site contains hyperlinkgraphical portraits of the various merchants whose character informationis stored in the database. A user may mouse-click on a selected portraitto link to hyperlinked text describing the items of merchandise beingoffered by that merchant. Clicking on the merchandise description willbeing the negotiating process.

The buyer begins the negotiating process by making an initial offer topurchase the selected merchandise at a particular price, accompanied bydialogue intended to get the supplier to a favorable emotional state toaccept the buyer's offer. The supplier then would respond with acounteroffer.

In addition to making an offer to purchase, the buyer may ask thecustomer a yes/no question. This is intended to build a demographicprofile of the supplier which will be stored and used in later sessionswith the same supplier. The supplier's response will also be used tocalculate a new emotional state of the supplier which will determine thebuyer's response to the supplier's counteroffer.

The buyer may further make additional offers to the supplier, such as“throw-in” memberships to consumer buying clubs and the like, if thesupplier would agree to the buyer's latest price. The identification ofavailable “throw-ins” are stored in “upsell” interface files.

The objective of the user or buyer is to interact with the supplier in amanner that would cause the supplier to agree to the buyer's monetaryoffer for the item at issue. In this regard, each supplier has a uniquecharacter profile as stored in the character model behavior files in thedatabase. The supplier's mood or emotional state is conveyed to thebuyer through three mechanisms. First, each time a buyer submits anoffer, the character graphics are updated to a new facial expressionindicative of the supplier's new emotional state. Second, textualdialogue matching the supplier's state is selected from the dialoguegenerator file and displayed to the buyer. Third, and perhaps moresubtle, is the supplier's offer. As the supplier enters more negativeemotional states, his or her offers will become less generous, and viceversa. The challenge for the buyer is to interpret the supplier's moodfrom the various indicators and respond with a counteroffer andassociated mood that are appropriate for the perceived mood of thesupplier.

The supplier's mood is calculated by the database engine in response todata retrieved from the database relating to the supplier profile andthe buyer profile (if any). For example, a supplier whose state is “Sad”receives a bid from a buyer with an “apologetic” stance. However, theactual emotional state reached is derived from an algorithm taking intoaccount additional input such as the value of the buyer's offer, thelength of time that the supplier and buyer have been engaged, the numberof offers and counteroffers already made, the results of the buyer'slast negotiation, the results of the seller's previous negotiatingsessions, etc.

At the beginning of a negotiating session, the database engine maydetermine an initial emotional state of the supplier from variousretrieved data, including the supplier's emotional state fromimmediately preceding sessions (regardless of buyer); the supplier'sstate as it relates to the particular buyer based on past history ofsessions with that buyer; and the buyer's historical negotiatingresults. These factors can be weighted in any desired manner to arriveat an initial state and a weighting factor that can be used to weightany state transition experienced by the supplier according to responsematrix outputs.

Each time a supplier submits a new counteroffer, the database engineuses various data to compute a new supplier offer and emotional state,such as the reasonableness of the counteroffer, as determined by thedivergence of the supplier's counteroffer from a predetermined expectedvalue; the response time of the supplier; and the aggregate emotionalstate responses of the supplier throughout the negotiating process.Additionally, the engine may take into account the traffic volume on thesite. High traffic volume indicating high levels of supplier interestcould be used to cut short the present process.

The business rules and logic are structured based on gathered knowledgeregarding the product at issue, the most reasonable price the productmay be acquired at through other channels, and a targeted revenuedistribution for each particular product. For example, 70% of thenegotiations might be targeted to result in a sales price .+−0.2% of thesuggested retail price, 14% at a price 2-10% above the retail price, 10%at a price 2-6% below the normal retail price, 5% at a price 6-8% belowsuggested retail, and 1% at a price 8-10% below suggested retail.

Ancillary features may be provided to the Web site to increase userinterest and involvement. For example, hyperlinks may be provided tobiographical sketches of each supplier where a user may learn importantclues to the supplier's behavior. A user may hyperlink to an“eavesdropping” screen where the user may observe a negotiation beingcarried out by another user. An “Upcoming Merchandise” screen maypreview future goods that will available for sale. “A Hall of Frame”screen may list the most successful “hagglers” at the site; a tutorialarea may be provided where a buyer can engage in a simulated negotiatingsession to familiarize herself with the process.

FIG. 41 depicts a process 4100 for affording project management in amarket management framework. A graphical user interface is provided inoperation 4102, where the graphical user interface provides a processguide for a sourcing process.

In operation 4104, a user is allowed to create a project utilizing thegraphical user interface. A searchable database having information onvarious topics is provided in operation 4106. Preferably, the databaseincludes links to external web resources based on the created project.In operation 4108, context-specific coaching is provided on topicsrelated to the created project.

In one embodiment of the present invention, the user is allowed toorganize documents related to the created project. In anotherembodiment, a user profile for the user is created. Optionally, the userprofile may include specific data views and permissions for the user.

In another embodiment of the present invention, trader partner on-lineconferencing is provided. In another aspect, the context-specificcoaching may include utilizing software agents to search for requestedinformation.

While various embodiments have been described above, it should beunderstood that they have been presented by way of example only, and notlimitation. Thus, the breadth and scope of a preferred embodiment shouldnot be limited by any of the above described exemplary embodiments, butshould be defined only in accordance with the following claims and theirequivalents.

1. A method in a computer system for analyzing expenditures by categoryin an electronic commerce environment, comprising the steps of: (a)identifying an electronic file including expenditure data relating tospent monies, wherein the expenditure data is derived with the computersystem from a purchasing module including data relating to internalspending of the spent monies, and from a performance service offered bysubscription and accessible by the computer system to identify with theperformance service an industry analysis related to the spent moniesselected by the computer system from a plurality of unique industryanalyses, and wherein the expenditure data includes a total cost ofownership; (b) extracting with the computer system the expenditure datafrom the file; (c) determining an independent variable and a dependentvariable relating to the expenditure data; (d) graphing the expendituredata based on the independent variable and the dependent variable withthe computer system.
 2. A method as recited in claim 1, furthercomprising the step of allowing a user to create the file includingexpenditure data relating to spent monies.
 3. A method as recited inclaim 1, wherein the file is based on an electronic materials worksheet.4. A method as recited in claim 1, wherein the file is based on anelectronic service worksheet.
 5. A method as recited in claim 1, whereinthe independent variable and the dependent variable determined in thestep of determining include price distribution and total expenditure bysuppliers.
 6. A method as recited in claim 1, wherein the conclusionsdisplayed in the step of displaying include recommended issues toconsider.
 7. A method for as recited in claim 1, further comprising thestep of allowing a user to input conclusions into the computer systemabout the expenditure data graphed in the step of graphing.
 8. Acomputer program embodied on a computer readable medium for analyzingexpenditures by category, comprising: (a) an identifying code segmentfor identifying a file including expenditure data relating to spentmonies, wherein the expenditure data is derived from a purchasing moduleincluding data relating to internal spending of the spent monies, andfrom a performance service offered by subscription and accessible by thecomputer system to identify with the performance service an industryanalysis related to the spent monies selected by the computer systemfrom a plurality of unique industry analyses, and wherein theexpenditure data includes a total cost of ownership; (b) an extractingcode segment for extracting the expenditure data from the file; (c) adetermining code segment for determining an independent variable and adependent variable relating to the expenditure data; (d) a graphing codesegment for graphing the expenditure data based on the independentvariable and the dependent variable determined by the determining codesegment.
 9. A computer program as recited in claim 8, further comprisinga creating code segment for allowing a user to create the file includingexpenditure data relating to spent monies.
 10. A computer program asrecited in claim 8, wherein the file is based on a materials worksheet.11. A computer program as recited in claim 8, wherein the file is basedon a services worksheet.
 12. A computer program as recited in claim 8,wherein the independent variable and the dependent variable determinedby the determining code segment include price distribution and totalexpenditure by suppliers.
 13. A computer program as recited in claim 8,wherein the conclusions displayed by the displaying code segment includerecommended issues to consider.
 14. A computer program as recited inclaim 8, further comprising an inputting code segment for allowing auser to input conclusions about the expenditure data graphed by thegraphing code segment.
 15. A computer system for analyzing expendituresby category, comprising: (a) identifying logic for identifying a fileincluding expenditure data relating to spent monies, wherein theexpenditure data is derived from a purchasing module including datarelating to internal spending of the spent monies, and from aperformance service offered by subscription and accessible by thecomputer system to identify with the performance service an industryanalysis related to the spent monies selected by the computer systemfrom a plurality of unique industry analyses, and wherein theexpenditure data includes a total cost of ownership; (b) extractinglogic for extracting the expenditure data from the file; (c) determininglogic for determining an independent variable and a dependent variablerelating to the expenditure data; (d) graphing logic for graphing theexpenditure data based on the independent variable and the dependentvariable determined by the determining logic.
 16. A system as recited inclaim 15, further comprising creating logic for allowing a user tocreate the file including expenditure data relating to spent monies. 17.A system as recited in claim 15, wherein the file is based on amaterials worksheet.
 18. A system as recited in claim 15, wherein thefile is based on a services worksheet.
 19. A system as recited in claim15, wherein the independent variable and the dependent variabledetermined by the determining logic include price distribution and totalexpenditure by suppliers.
 20. A system as recited in claim 15, whereinthe conclusions displayed by the displaying logic include recommendedissues to consider.